The Non Renewal Of Contract Letter To Employee is a crucial document in Malaysian employment practice, used when an employer decides not to extend or renew a fixed-term employment contract. This document must comply with Malaysian employment law, particularly the Employment Act 1955 and the Industrial Relations Act 1967. It serves multiple purposes: formally communicating the non-renewal decision, specifying the final working day, outlining transition arrangements, and detailing final entitlements. The letter should be issued with sufficient notice before the contract's expiration date to ensure smooth transition and compliance with legal requirements. It plays a vital role in maintaining clear communication and protecting both employer and employee interests while managing the conclusion of the employment relationship professionally.
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1. Letter Header: Company letterhead, date, reference number, and employee's complete contact details
2. Subject Line: Clear indication that this is a notice of non-renewal of employment contract
3. Opening Statement: Reference to the current employment contract, including its start and end dates
4. Non-Renewal Notice: Clear statement of the decision not to renew the contract and the final working day
5. Reason for Non-Renewal: Brief, professional explanation for the non-renewal decision (if appropriate)
6. Final Entitlements: Overview of final salary, unused leave, and other contractual entitlements
7. Handover Requirements: Instructions regarding the handover of work, company property, and documentation
8. Closing Statement: Expression of appreciation and good wishes for future endeavors
9. Signature Block: Authorized signatory details, including name, designation, and company stamp
1. Certificate of Service: Offer to provide a reference letter or service certificate, included when the employee has served satisfactorily
2. Non-Compete Reminder: Reminder of any existing non-compete or confidentiality obligations, included when such clauses exist in the original contract
3. Exit Interview: Information about exit interview arrangements, included for companies with formal exit procedures
4. Continuation of Benefits: Details about any benefits that extend beyond the final working day, included when applicable
5. Alternative Position Offer: Information about alternative positions within the company, included when such opportunities exist
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, prorated bonus, leave encashment, and any other entitlements
2. Company Property Checklist: List of company assets to be returned, including IT equipment, access cards, and documents
3. Handover Documentation Template: Standard format for documenting ongoing projects, contacts, and important information for transition
4. Exit Clearance Form: Checklist of departmental clearances required before final settlement
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